During the first months of 2016 your bankruptcy can write off more of your tax debts.
If you have enough equity in your home to cover a recorded tax lien, to keep your home you must pay that tax. Hereâs how bankruptcy helps.
If you owe more than 1 year of income taxes, some may be dischargeable and some may not. What happens if you owe both kinds?
Income tax debts that can’t be written off must be paid, either after a Chapter 7 case or during a Chapter 13 one.
Income tax debts can be written off when meeting certain conditions, mostly by being old enough. Here’s what happens in Chapter 7 and 13.
The second scenario, the Chapter 13 solution for keeping a vehicle if you’re behind on payments.
If you owe a bunch of income taxes, and have a tax lien on your home, it’s tempting to try to fix everything by selling your home.
A tax lien recorded against your home hurts even if the home has no equity. A Chapter 13 bankruptcy can often get rid of such tax liens.
The IRS or state recording a tax lien can be very damaging in many ways. Bankruptcy can prevent that damage.
Bankruptcy does not writes off newer income taxes, but Chapter 7 and Chapter 13 both still have ways of helping.
Bankruptcy writes off income taxes, if they meet certain conditions. These conditions are relatively, but not completely, straightforward.
Save your home by catching up on real property taxes and securing the release of recorded income tax liens.
Chapter 13 protects you from collection of back child/spousal support and income taxes, & can save you a ton of money on your vehicle loan.
Chapter 13 is a creative and flexible way to deal with your debts, often much more powerfully that a Chapter 7 “straight bankruptcy” can.
Income taxes can be legally written off in bankruptcy under the right conditions. With careful planning, you can meet those conditions.